Tesco.com

Tesco.com

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  INTRODUCTION  Tesco:A MajorRetail Grocery selling store  Setup by Jack Cohen  First to Introduce Self- Service mode  Growth by Acquisitions  Introduced Trading Stamps  Businesses include financial services, online grocery retailing ,Petrol filling Stations
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  TESCO.COM- A RARE PROFITABLE.COM 1996: Decided to tap the Internet for Business. Accepted phone, fax, and Internet orders.  First retailing company that was an Internet Service Provider.  Proved Online Grocery selling as a viable Business.
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  REASONS FOR PROFIT GENERATION Onlinecustomers tended to order costly Merchandise in large quantities Opportunities for cross selling (Pop-up windows) Customers ordered in bulk to justify delivery charges of $ 5
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  A UNIQUE BUSINESS MODEL “ThePick-In-The-Stores System” Rejected warehousing Model : As demand was low and it was a huge investment. Opted for Positioning Information System in Existing Stores.  Used Shopping cart equipped with Online Displays.
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   Divided Outletsinto six Major zones – Bakery, Groceries, Frozen Foods, Chilled-Foods, Liquor, Produce.  Electronic Scanning of Ordered Items  Suggested Substitute Products for Out of Stock Items. Continued…
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  FLOWCHART
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  THE INGREDIENTS OF SUCCESS DeliveringExcellence:  Problem: Complex Delivery Procedure What Tesco.com did?  Optimal use of Time and Resources  Predetermined route maps for Delivery  Generated $27 million through delivery Fees
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  INVENTORY MANAGEMENT  Inventorymonitoring and replenishment How these conditions were fulfilled?  Used a wheel with light of various colors  Customer profile Database generated through loyalty card scheme
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  CUSTOMER SERVICE Differential pricing Varietyof merchandise availability on Tesco.com Text to speech conversion technique was introduced for Blind people Timeliness of deliveries and accuracy with orders served
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  WEBSITE MAINTENANCE  Tieup with knowledge management consultants - Intervowen  Website updated on regular basis  CD version of website for dial up mode customers  System checks were carried out  MyWeb Software adopted
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  Low fixed costbut high variable cost Intensifying competition Increasing Internet Traffic Entry in U.S. Market REASONS TO WORRY
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  Presented By: Ashima Pragyandipta Patnaik MayurKansal Neetika Panwar Megha Yadav
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  Queries???
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  Sales increased from $19.2Millionto $264 million Online venture sustained due to Smart-small business The Safeway alliance-The biggest testimony UNIQUE BUSINESS MODEL- THE OUTCOME